Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: Johnny Canuck who wrote (40346)	11/13/2003 2:29:07 AM
From: Johnny Canuck	Read Replies (1) \| Respond to of 71116

Part 2: Comcast's promotion for DSL customers, launched quietly on Labor Day, is another sign that the cable industry is warming up discounts as a way to prevent phone companies from m,aking too much headway. Comcast's move specifically targets its main adversaries, SBC C,ommunications and Verizon Communications, which offer DSL services in the three states where the promotion is being offered. Both Bells have launched their own DSL discount promotions, with SBC making a more-aggressive $26.95-a-month offer. The price cuts have helped both companies report strong gains in their respective DSL markets and have raised questions about whether cable companies will follow suit. To q,ualify, customers have to prove they are DSL customers. But they do not need to pay for Comcast's basic cable video offering, meaning people can pay just $19.95 a month for a year's worth of service, on top of one-time installation fees and $3 a month to lease a modem. Comcast promoted the deal through an e-mail campaign. "What stands out to me is that it's not about getting new price-sensitive adopters to cable, it's about churning som,ebody away from DSL," Jim Penhune, an analyst at Strategy Analytics, said. A Comcast representative said the promotion is an attempt to win back customers who may have been attracted to lower-cost offerings from the Bells. The representative compared this campaign to similar win-back campaigns waged against satellite TV companies, which have threatened cable by luring away customers with cheaper prices and more pr,ogramming options. "It's a very competitive space, and we have aggressive offers in the marketplace," Comcast spokeswoman Sarah Eder said, in reference to the broadband offer. Consumers may be the ultimate winners With so many promotions coming from so many sides, consumers are spoiled with a wealth of broadband options t,hat are marginally more expensive than standard dial-up access. Some companies are going beyond promotions and offering cheaper, slower tiers as alternative plans. Comcast's $19.95 lasts 12 months, but reverts back to either $42.95 or $57.95 a month for noncable subscribers. Cablevision, which serves suburban New York, currently offers the first six months for $29.95, but reverts back to its $49.95 rate once that period is up. , Other companies have turned to different price points. Charter Communications offers two general service tiers--a lower-speed 384kbps tier for $29.99 a month and a 2mbps tier for $39.99 a month. Cox Communications has begun offering a lower-priced, slower version for $24.95 to $29.95 a month in some markets, according to reports. For the DSL providers, their promotional offers may be limited, but they revert back to lower base prices. Verizon offers $29.95 for the first three months, but then changes to its standard $34.95 a month after the period ends. Qwest Communications offers DSL for a monthly rate of $29.95 for the first year, but then charges $34.99 for its lower-speed tier after that. BellSouth charges as low as $29.95 a month, but only if people subscribe to its long-distance and local phone calling plans as well. Despite SBC's cheap $26.95 introductory offer, customers must pay $49.95 a month after the plan expires. In addition, plans by both the Baby Bells and the cable companies require people subscribe to phone or basic cable TV service. Analysts said the flurry of deals makes it clear that cable companies like Comcast are getting serious about fighting back against DSL price cuts. "They're taking their gloves off and saying, 'SBC has been doing this, so we're going to take a shot at them,'" Mike Paxton, an analyst at In-Stat/MDR, said. Harry: Buy the guys selling the bullets (ie ... the equipment suppliers). No idea how long this can go on. After years of lousy cash flow from operation they are at it again,